RMB Has The Potential To Become The Global Reserve Currency.

Industry experts believe that in International

From the Royal Bank of Scotland's research report to Barry Eichengreen, a professor of economics at University of California at Berkeley, it seems that the potential of the renminbi to become the global reserve currency has reached a global consensus.

And industry experts believe that in the international monetary system, the Renminbi should become the core reserve currency.

In addition, the industry generally believes that the next five years, the internationalization process of RMB will be faster.

A few days ago, the Royal Bank of Scotland (RBS) released its "offshore" issue.

Recently, Barry Eichengreen, an economics professor at University of California at Berkeley, said in an interview that the improvement of China's comprehensive national strength has made the renminbi adequate for the duties of the major international currencies.

He also believes that the Chinese government will accelerate the pace of RMB internationalization in the next 10 years, and the scope of RMB will be expanded and its status will be higher and higher.

He said that in the next 10 years, the yuan will be enough to challenge the hegemony of the US dollar in the international economic system.

More importantly, RMB convertibility has shifted from the current level to the capital account level, which indicates that the internationalization of RMB is going deeper.

In August 2010, the central bank issued the circular on the three yuan institutions such as the RMB clearing bank outside China to apply the RMB investment interbank bond market pilot related matters, allowing relevant overseas institutions to enter the interbank bond market to invest in the pilot projects.

In January 2011, the central bank also issued the "measures for the pilot management of RMB settlement for offshore direct investment". Banks and enterprises in the pilot area for cross border trade settlement of RMB will be able to carry out the pilot project of RMB settlement for offshore direct investment.

This is another important attempt of China's capital account liberalization under the local currency.

Moreover, more importantly, the state

"RMB convertibility under capital terms" has been written into the "12th Five-Year plan"; Premier Wen Jiabao in the government work report also made it clear that "expanding the use of RMB in cross-border trade and investment" and "promoting convertibility under RMB capital account"; during the two session, the "international monetary strategy" became the focus of attention and discussion by representatives of members and people from all walks of life.

Industry experts believe that this means that the internationalization process of RMB in the "12th Five-Year" period will be faster than before.